An Australian who was on board a passenger ferry that burst into flames off Bali has told 7NEWS how he floated for hours waiting to be rescued.

The boat was heading to the popular island Lombok when the fire took hold. One person is confirmed dead.

WATCH THE VIDEO ABOVE: Australian survives Bali ferry fire after floating for hours

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Huddling in lifejackets as black smoke billowed from below, dozens of passengers watched on as flames filled the ferry.

Their only escape was a leap of faith into the sea in complete darkness. Among them at least one Australian.

James Scooth suffered broken ribs and floated for hours in the water.

“Bigger flames I got on here. Just massive, big. And then everyone panics and just rip life jacket. No lifeboats. No boats,” he said.

“Just floating. Four hours or something. Four hours I think.”

The fire erupted on the passenger ferry. Credit: 7NEWS

Aussie James Scooth tells of the ordeal. Credit: 7NEWS

By daybreak, rescue boats began the arduous task of plucking passengers to safety. One man dropped to his knees with relief.

“Speechless,” one rescuer said. “I still feel the trauma.”

The boat had left from Bali’s main public ferry terminal, Padangbai Port, where tourists often leave for the Gili Islands.

This ferry was bound for tourist hotspot Lombok, a larger vessel designed to carry cars and trucks, where one passenger claims the fire began.

It was headed for Lombok. Credit: 7NEWS

One person died. Credit: 7NEWS

One mother says she only had time to save her child.

One passenger is dead. More than 100 were rescued.

This is now the second deadly Indonesian ferry fire in as many weeks.

Australia’s Department of Foreign Affairs is investigating exactly how many Australians were involved.